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24 January 2013

VCs 2012 - Total Dollars And Deal Volume Both Down

VCs Invested $26.5B In 3,698 Companies In 2012, Total Dollars And Deal Volume Both Down | TechCrunch: ". . . . “As some expected, 2012 investment levels are less than what we saw in 2011. And, we’ve seen nearly a third fewer dollars going into even less Seed Stage companies during that same time. As the number of new funds being raised continues to shrink, venture capitalists are being more discriminating with where they’re willing to place new bets. At the same time, they’re holding on to reserves to continue to support the companies already in their portfolio. Both of these factors are taking a toll on the amount of capital available for young start-ups, which is reflected in the 38 percent drop in the number of Seed Stage companies receiving VC dollars in 2012.”. . . “As some expected, 2012 investment levels are less than what we saw in 2011. And, we’ve seen nearly a third fewer dollars going into even less Seed Stage companies during that same time. As the number of new funds being raised continues to shrink, venture capitalists are being more discriminating with where they’re willing to place new bets. At the same time, they’re holding on to reserves to continue to support the companies already in their portfolio. Both of these factors are taking a toll on the amount of capital available for young start-ups, which is reflected in the 38 percent drop in the number of Seed Stage companies receiving VC dollars in 2012.”. . . ."